PepsiCo CEO Ramon Laguarta said the company is developing smaller-portion and lower-calorie products to appeal to consumers using GLP-1 weight-loss drugs [1].
This shift comes as appetite-suppressing medications change global eating habits, potentially reducing the demand for traditional high-calorie snacks and beverages. For a company built on large-scale consumption, adapting to a market with suppressed appetite is a critical move to maintain revenue streams [2].
Speaking at the CNBC "Squawk on The Street" studio in New York, Laguarta said how the company is navigating these changing consumer preferences [1]. He said that GLP-1 drugs, such as Ozempic, create a specific market opportunity for products that offer portion control and reduced caloric intake [2].
Beyond simply reducing size, the company is exploring new formulations and categories to keep users engaged with their brands [1]. This includes a focus on products that provide specific functional benefits. Laguarta said there are opportunities in teas designed for mental focus and the potential for fiber to become a primary nutritional driver, similar to the rise of protein in recent years [3].
The strategy involves a multi-pronged approach to product development. By diversifying the portfolio, PepsiCo aims to capture the needs of users who may still crave flavor, but require smaller quantities or different nutritional profiles [4]. This transition allows the company to pivot from a volume-based model to one focused on specialized consumer needs [4].
Laguarta's comments highlight a broader trend among food and beverage giants as they react to the pharmaceutical shift in weight management. The company is positioning itself to remain relevant as the biological drivers of hunger change for a growing segment of the population [2].
“PepsiCo is developing smaller-portion and lower-calorie products to appeal to consumers using GLP-1 weight-loss drugs.”
The move by PepsiCo signals a strategic pivot for the snack and soda industry. As GLP-1 medications decouple the desire for taste from the biological urge to overeat, companies must shift from selling volume to selling precision. If successful, this allows PepsiCo to hedge against the risk of declining calorie consumption by capturing the emerging 'functional' food market.
